Why Gaps Matter

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[QuestionTheSystem]

dude, you better make a gazillion dollars when this market turns down, you've been talking about this fake market rally for a while now...

[3399cameroon]

dude you are shorting against your MPT score

[Flurken112]

@wizardofounce Excellent explanation, thank you very much.

[tim3687]

There's a huge crash coming SOON. Just google 'Insiders dumping stock" and you will find several news agencies covering what has been going on in the last several days. This is recent. These CEOs and other INSIDERS are GETTING OUT OF THE STOCK MARKET. The amounts of these dumps are huge and it's not just a few companies but MANY. These insiders are the best barometer of what is coming.

[wizardofounce]

@Flurken112

A gap is formed when the opening stock price of the day is much higher (or lower) than the previous days closing price. The area created between the two prices (where trading did not take place) is referred to as a "gap".

The old trading axiom says that all gaps will be filled--if a stock price jumps up, creating a gap in the trading price, theoretically price should later on come back down to "fill" the gap.

This can happen across multiple time frames.

[wizardofounce]

@GanjaZombi2

no. cramer is a media puppet....wait....i guess that makes you right.

[pulsescan72]

Although I often disagree with you on many things I cant argue against your outstanding analysis in this video. From one trader to another I give you Madd Props on this this one dude. Well done. I actually agree with you on this one. LOL . Be encouraged. THE VULCAN

[colty77]

I would think the only way (using sound technical analysis) that you could go long this market is when there is a pull back at least to the trend line established from the previous two low points (post the flash crash).. and if there is strong buy volume at that lower trend line. From there I would say the bulls have grabbed control. From here it's too risky (based on just the QE ponzi scheme) for me.

[cunnidvd]

By these statistics there should be next to zero percent chance of not even one of the ten gaps filling in this time frame. I am guessing the historical data do not apply to current conditions.

[curlyorange]

Christian will be right if the Nasdaq gaps down tomorrow forming an evening doji star.  It will be a new moon tomorrow as well (if you believe in those things). Otherwise he's going to be facing a tough crowd.

[GanjaZombi2]

I think Christian is right and oldschoolchartist is delusional,  he should have been banned; there are enough sycophants and stock market cheer leaders spouting rigmarole on the financial news stations. This channel is for an objective and lucid look at this contrived and deranged market.

[Flurken112]

Can someone please explain what a "Gap getting filled" acually means?